The last 18 months has been unprecedented in a number of ways, but the rebound in the housing market has taken most by surprise.
There are number of reasons why the market has rebounded including low interest rates, some relaxation in lending restrictions and low supply in some areas.
The outcome is that many younger people are being priced out of the market, which isn’t a new problem but one that’s intensified in recent months and one that’s likely to gain increasing media attention as we approach the next federal election.
The intent here is to summarise some recent government initiatives that are intended to assist young people enter the housing market and also some commentary about what might happen if this or future governments determine that more intervention is needed (with reference to a recent initiative from the New Zealand government).
As per Victoria Government Covid-19 restrictions, all staff at Next Level Financial Services are working from home. We are continuing to offer our full range of services via telephone calls, emails and online Zoom meetings. Please get in touch on 03 9188-4254 if you require any assistance.
Once government restrictions are eased and we return to the office, we're taking steps to protect our clients, staff and business by:
- Staying home if unwell
- Using the Victorian Government QR Code Service at point of entry
- Keeping our fitted masks handy at all times
- Keeping our distance from others where possible
- Washing our hands regularly
- Cleaning used surfaces frequently
- Having a COVIDSafe Plan for our business
There are some important changes to superannuation regulations that will be rolled out over the next 12 months. Some of these have been expected for some time and others were announced in last month’s federal budget.
We’ll discuss the changes that will have an impact on your financial plan directly and through the normal review process to ensure that you’re taking advantage of the opportunities that are relevant to you, however as it’s difficult to keep track of all changes we’ve summarised the key issues and impacts below.
As always, please contact me with any queries or for more information.
The table provides a high level summary with more detail below:
There was a press release from the Prime Minister's office over the weekend that with everything happening at the moment hasn't received much airplay, but which has the potential to impact your superannuation pension requirements for the forthcoming financial year.
As you'll be aware regulations require that the recipients of a superannuation pension draw at least a minimum level of income each year. The minimum depends upon the age of the recipient and is calculated as a percentage of the balance of their account at the start of the financial year.
For example, a superannuation pension recipient aged between 65 and 74 is normally required to draw a minimum of 5% of their account balance each financial year.
The 2021/22 budget was handed down by federal government last night. As was the case with the delayed (COVID) 2020/21 budget, the focus is expansionary to pump money into the economy.
Below is an overview of the key issues that we expect will most impact financial plans and strategy in the future. This isn't a complete list of all the initiatives that were announced so if you require further detail on the information below or on any other matters from the budget announcement then please contact our office and we'll be very happy to provide that detail.
The key initiatives are:
Low and Middle Income Tax Offset (LMITO):
This offset was introduced for the current tax year and will be carried over to the 2022 financial year as well (ie: to 30 June 2022).
Next Level Financial Services provides financial information in an easy to read format.